5 Common Retirement Withdrawal Mistakes
We spend decades building our retirement accounts.
Then one day, the question shifts.
How do I take this money out wisely?
Most women focus on saving well. Very few are taught how to withdraw well. And the order in which you pull from your accounts can impact how long your money lasts, how much you pay in taxes, and how much stress you carry into retirement.
This is where strategy matters.
Here are five common mistakes I see, and what you need to think about instead.
Most women focus on saving well. Very few are taught how to withdraw well.
1. Ignoring Required Minimum Distributions
Required Minimum Distributions, or RMDs, currently begin at age 73 for most traditional retirement accounts.
If you have significant balances in traditional IRAs or 401(k)s, those forced withdrawals can increase your taxable income quickly. That may push you into a higher tax bracket or affect Medicare premiums.
Many women are surprised by this.
Planning ahead matters. In some cases, partial Roth conversions before RMD age can help smooth future tax exposure. But that decision needs to be thoughtful and individualized.
Taxes in retirement are not accidental. They are planned.
2. Claiming Social Security Too Early Without a Strategy
You can begin Social Security at 62. But that does not mean you should.
Your full retirement age depends on your birth year. Waiting beyond that, up to age 70, increases your benefit by about 8 percent per year.
For some women, especially those with longevity in their family or who are single later in life, delaying benefits can significantly increase lifetime income.
For others, earlier claiming makes sense.
The key is this: Social Security is not just a date. It is a decision.
3. Withdrawing From Tax-Deferred Accounts Too Soon
You are allowed to start withdrawing from your 401(k) or IRA at age 59 and a half without penalty.
But just because you can does not mean you should.
Every year you leave that money invested gives it the opportunity to continue compounding. Fourteen extra years of growth between age 59 and 73 can meaningfully change your outcome.
If you have taxable brokerage accounts or other assets, it may make sense to draw from those first while allowing tax-deferred accounts to continue growing.
Sequence matters.
4. Using Your Roth Too Early
Roth accounts are powerful.
You have already paid taxes on the contributions. Withdrawals in retirement are generally tax-free. And Roth IRAs do not require RMDs during your lifetime.
That flexibility is valuable.
If possible, preserving your Roth for later years can provide tax diversification and income control. It can also serve as a buffer during years when you want to avoid increasing taxable income.
Think of your Roth as strategic capital, not just accessible money.
5. Trying to Do All of This Alone
Retirement withdrawal strategy is more complex than most people realize.
Tax brackets shift. RMD rules change. Social Security decisions interact with Medicare and investment income. Markets fluctuate. Health care costs rise.
And women often live longer.
This is not about intelligence. It is about complexity.
Working with a fiduciary financial advisor, someone legally required to act in your best interest, can help you create a withdrawal plan designed to reduce taxes and extend the life of your savings.
That does not mean giving up control. It means building a team.
The Bigger Picture
You worked hard for your retirement savings. The distribution phase deserves just as much intention as the accumulation phase.
When we take control of our health and wealth, we reduce uncertainty and increase stability.
Retirement is not just about having money.
It is about having a plan.
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You deserve to feel confident and secure about your financial future. This is why I have created my 8-week financial literacy program, What Wealthy Women Know - so that all women have access to the information necessary to secure their future.
Remember, it’s not about chasing perfection. It’s about making intentional choices that align with your goals.
Whether you lack confidence in making financial decisions or feel overwhelmed by yet another task in your already beyond-full schedule, here’s the truth:
Your future depends on your financial literacy.
So, are you ready to take control and build the wealth and security you deserve?
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Financial Disclaimer: The information contained in this blog is provided for informational and educational purposes only and does not constitute financial, investment, tax, or legal advice. The content should not be relied upon as a basis for making any financial decisions. Before making any financial decisions, you should consult with a qualified financial advisor, accountant, or attorney who can assess your individual circumstances. The author(s) and publisher of this newsletter are not licensed financial advisors and accept no liability for any loss or damage arising from reliance on the information provided.
